PRESENTATION ON A CASE
STUDY OF HEINEKEN BEER
PREPARED BY: GROUP-4
Khandoker Nazmuz Sahadat Roll-008
Mokarram Hussain Khan
Roll-009
Md Anwar Khurshid
Roll-011
Md Morshedul Islam
Roll-015
Md Shahidur Rahman
Roll-003
M Aminul Islam
Roll-007
Imran Momin
Roll-01
Raihan Kamal
Roll-048
CASE OVER VIEW
Heineken was founded in Amsterdam by
Gerald Heineken in 1864. Presently,
Heineken NV is the world’s third largest beer
producer after Anheuser-Busch and SAB
Miller. Almost from the start, the firm was
successful within a few years of its founding.
Heineken sells more beer out side the United
States than either of them. Of its 10.3 billion
euro in 2002 sales only 14% were in home
market. Heineken not only a market leader
in every European countries it also sells its
products through out north and south
America, Africa and Asia –170 countries in
all.
ANSWER TO Q NO-_1, FUNDAMENTAL ISSUES IN
FOREIGN MARKET ANALYSIS OF HEINIKEN
• Heineken was founded in Amsterdam by Gerald Heineken in
1864. The firm was very successful within a very few years of
its founding because of its quality product and right way of
market positioning and sales promotion initially in Europe,
Far East and later on United States by his friend as the name
Van Munching & Company. Prior to World War-II Despite
Heineken success, it ceased its US operations during
prohibition in 1933, it reestablished those operations, again
granting Van MUNCHING & Company of NEW YORK
exclusive rights to import Heineken products into the United
States. Heineken has continued to grow steadily. It has
breweries in over 50 countries. Some of the largest are in
Canada and France. (contd)
• Its joint venture with a leading Japanese brewer,
Kirin, gives it a strong presence in that key market.
Heineken aggressively expanded in European market
in 1980 considering the EU’s competition of its
common market and invested heavily in new internet
based technology. Heineken has made one recent
important strategic decision to change the Van
Munching & company to Heineken USA which has
helped cut costs and added additional profit.
Heineken has made another significant investment
for Muslim customers by producing non alcoholic
beer under the Fayrouz label which has brought 1.3
billion Muslims customers in the world to enjoy the
Heineken Beer.
Discuss the advantages and
disadvantages of Heineken’s exporting
• Almost immediately after the foundation of Heineken in
1864, it started to export beer to France, Italy, Germany
and upto the Far East countries.
• 1920 the company ceased its export to USA due to
Prohibition, under which the sale, manufacture, and
transportation of alcohol for consumption were banned
nationally
• Heineken setup breweries in over 50 countries including
Canada, France, New Guinea, Australia and Brazil. It got
into Japanese market through joint venture with a leading
Japanese brewer Kirin. (CONTD)
• Heineken setup breweries in over 50 countries including
Canada, France, New Guinea, Australia and Brazil. It got into
Japanese market through joint venture with a leading
Japanese brewer Kirin. Heineken aggressively expanded its
market in Europe in 1980s to establish itself with
overwhelming market dominance. Subsequently, it bought
breweries in Greece, Ireland, Italy and Spain and thereby
expanded its product lines and facilities of distribution
throughout Europe
• But interestingly Heineken did not setup any brewery in
USA, taking lessons from Miller, a distributor of Lowenbrau
in US market, importing from Germany In 2002 Heineken
bought Egypt’s brewery, Al Ahram Beverage Co. Thereafter,
in 2003 onward it started exporting nonalcoholic beer in
Muslim World, a popular product of Al Ahram and captured
the large untapped market.
key issues facing Heineken in so far as
international licensing is concerned
• Heineken has boldly ventured into international markets
and so far has been a big success. It has made the right
decisions so far and has gone on to be the third largest
beer producer. Not only is it a big market seller in Europe,
but also in Asia, North America and South America, and
Africa as well
• The key issues facing Heineken regarding international
licensing is the fact that people may no longer find the
Heineken beer as it was before. People's perception can be
a very important factor in the success or flop of an
international product that is brewed locally. (CONTD)
• Another key issue Heineken might eventually face is that
the original flavor of the brew might be mixed with a
flavor from the locality, thus, losing its original, imported
taste. It's not about perception. That can really happen
because the locality might greatly influence the taste and
flavor of the locally produced beer.
• Heineken is that it must be shrewd enough to
choose the business partner that has the lowest
demand. The licensee must agree on a high
value of fees the parent company would charge
on every bottle of beer it could sell
Answer to Q No-4
• Heineken's Greenfield Investments
• In 1931 the very first foreign Heineken brewery was
opened near the Indonesian city of Surabaya. Two years
later Heineken set up a brewery in Singapore together with
soft drinks producer Fraser & Neave
• Heineken setting up brewery operations
• After world war-II, export became a top priority for
Heineken
• Shortly after the war, African countries, especially in
Western Africa, were top export destinations for
Heineken beer
Heineken using Licensing to expand exports
• From the 1970's when it began to "go international"
Heineken expanded its interests by licensing
agreements "Firstly, by concluding licensing
agreements with various breweries in France,
Ireland, Spain and Italy and subsequently by taking
participation in those breweries.
• FDI through Collaborative Relationships
• In 2002 Heineken entered into an agreement with
Canadian brewer Molson who acquired Kaiser in
Brazil. Heineken entered into a partnership with
Molson by taking a 20% participation in the new
brewery group that Molson formed by merging Kaiser
and Bavaria
Anheuser-Busch taken over by In Bev
• On July 13, 2008, Anheuser-Busch and InBev
formally informed that they had agreed to a deal
resulting in InBev purchasing the American icon at
$70 per share, creating a new company to be named
Anheuser-Busch InBev. Post this acquisition,
Anheuser-Busch got two seats on the combined
board of directors.
CONCLUSION
• Heineken was the unique company in the history of the
global business that just after the establishment of the
company, the firm started exporting in the foreign market
successfully. The Heineken from its inception, became
very profitable firm except a few depression in the US
market, the firm grew in a very aggressive manner in the
global market and became the 3rd largest beer company in
the world. The key success factor of the company was, the
perfect
Vision and strategic objectives setting and
maintaining value chain in all the company activities to
maintain its best cost Brand image.
THANKS
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